How much do agents really earn for recruiting a permie?

[Weegee]

Im just curious as to how much agents get when they place a permie?
Its because despite my CV being posted for contract work , I do get calls from agents re: perm jobs.
I politely tell them that I am looking for contract work but some do persist and work really hard and tell me 'well you know the state of the market. there are no contracts out there but there are loads of permenant jobs.
blah blah ..yeah yeah I know all that!!

[rambaugh]

It depends but I believe an agent will typically charge a 20% retainer of base which is spread across a year or alternatively may charge an upfront flat fee of x value. Not bad if you are able to recruit for middle / senior management permanent roles.

[northernladuk]

Always a stream of contractors going permie so we are our own worst enemy here. So many people go contract just because it is easier than getting a perm job and are happy to switch back. They wouldn't do it if no one ever took it up. Just one of those things we have to deal with.

[Weegee]

It depends but I believe an agent will typically charge a 20% retainer of base which is spread across a year or alternatively may charge an upfront flat fee of x value. Not bad if you are able to recruit for middle / senior management permanent roles.

Thats interesting. I always thought that agents get a one off payment once the employee has passed their 3 month probabtion period.

It is quite lucarative for agents..and more then their agencies can make on placing people on contracts?

[rambaugh]

Always a stream of contractors going permie so we are our own worst enemy here. So many people go contract just because it is easier than getting a perm job and are happy to switch back. They wouldn't do it if no one ever took it up. Just one of those things we have to deal with.

that's true but there are always seem to be more permie jobs on offer than there are contract jobs. The expectation of experience also seems to be higher for a contract engagement than it is for a company looking for a permanent employee, if lets say for example all things we're equal.

[northernladuk]

that's true but there are always seem to be more permie jobs on offer than there are contract jobs. The expectation of experience also seems to be higher for a contract engagement than it is for a company looking for a permanent employee, if lets say for example all things we're equal.

I think that is because they have to do more ringing round for them and are harder to fill than contract jobs so just appears there are more. Jobs are open longer to get the right people so more people get rung per role.

[Wanderer]

Thats interesting. I always thought that agents get a one off payment once the employee has passed their 3 month probabtion period. It is quite lucarative for agents..and more then their agencies can make on placing people on contracts?

Years ago I got placed by an agent who told me he was getting paid 25% of my annual salary provided I worked at the company for more than 6 months. These days I would guess that the cost is anything from 5% to 25% of the employer's salary.

If a contractor takes the king's shilling and goes permie then there will normally be a temp-to-perm fee that the agency gets. How much this is will vary widely depending on the relationship between the client and the agency and how much business they put their way.

As for contractors, the agency will take from 5%-30% of the contractor's daily rate so I guess it all balances out.

The ideal scenario is for an agency to place a contractor on a fat 25% margin and they stay on with the client for years, blithely unaware that the agent is making money for old rope.

[sunflower]

I hear from a guy I know who used to work in recruitment (not IT, but oil and gas) that is can be 3 or 4 months salary.

[farout117]

I hear from a guy I know who used to work in recruitment (not IT, but oil and gas) that is can be 3 or 4 months salary.

Talking to a recruiter once, he told me that they get 25% of your annual salary once you finish your probation, be it 3 months or 6 months. That is why they are normally relucant to place a contractor in a perm role..

[GillsMan]

I helped a recruitment agent I've worked with before place a role at a client of mine recently. He charged 17.5% on the annual salary, so netted a cool £7875+VAT on the £45K salary.